PATH Act

The PATH Act is about hikes...hiking the great American landscape...which you paid for with taxes.

Eh, sorry...it’s definitely just about taxes.

The Protecting Americans from Tax Hikes Act, a.k.a. the PATH Act, doesn’t really change your tax refund amount. It does, however, make tax credit fraud more risky, but easier to qualify for. Tax credits claimed were scrutinized in a way that they weren’t before.

The PATH Act hit the “renew” button on some expiring tax laws. For instance, it kept the income you need to get the Child Tax Credit at $3k, rather than letting it go up to $10k as planned. An educational expenses tax credit was set to be slashed, but they kept it at $2,500. It was a great day for tax credits...if you qualify for them, that is.

If you don’t qualify for some tax credits, but you pretend you do, you'd better watch out. The PATH Act upped the penalties for tax fraud via tax credits, like banning you from claiming that credit again in future tax returns.

Just stay on the tax PATH, and everything will be okay.